As part of the panic that has consumed the world surrounding the COVID-19 pandemic, many consumers are asking whether insurance companies are doing anything different, or perhaps, postponing the ability of consumers to obtain life insurance, for general pandemic related reasons.
When a worldwide event such as COVID-19 consumes the news, life insurance becomes an increasing subject of interest. While little is known about how insurance companies will manage underwriting decisions surrounding COVID-19, what is now becoming a greater challenge are required off-site medical exams for approval with some life insurance policies. Information regarding medical exams is unfolding, and more will be known as carriers begin reporting to the general public.
Aside from the limitations of medical exams, it’s been business as usual for insurance carriers. With regard to recent travel, while carriers have historically and routinely inquired about recent foreign travel, there will be greater focus on travel to countries where the coronavirus is rampant.
According to Byron Udell, founder and CEO of AccuQuote.com, “Life insurance companies have always asked about recent or planned foreign travel to various regions that may be considered hotspots, and that has always been an underwriting factor. This is similar. You can figure that if you’ve recently returned from one of the places in the world that are COVID-19 hot-spots, one might expect most of the insurance companies to postpone underwriting your application for say, 30 days.”
News from the CDC and other official offices is fluid and precisely how life insurance carriers will react moving forward is still unknown. While some companies have updated their underwriting guidelines, the good news is that they are continuing to issue coverage for those consumers who are interested in obtaining life insurance.
“I believe it’s imperative we not panic, but rather, listen to the facts,” Udell said. “We strive to protect families every day in our line of work. If there are elderly or at-risk folks in your area, of course, they should do everything possible to avoid contact with infection. So, check on them, and make sure they know how to stay safe. The measures being taken nationwide now are being implemented in order to ‘flatten out the infection curve’ and ease the strain on our already inundated healthcare system.”
We must all do our part to help flatten out the curve with social distancing and good hygiene.
Udell said AccuQuote.com will be providing additional information about carrier updates, facts about the virus, and tips on staying healthy across social platforms and via email to its clients.
- SEE ALSO: Consumers Panic Shopping For Life Insurance In The Face Of Coronavirus (Forbes)
I got my first cancelation due to job closure.
She had two policies with me. Then added two more a couple of months age. Those last two are not in the budget now.
Its going to affect us all I am sure. Right now, many people are gun-shy to do anything that isn't absolutely necessary. Which is to be expected I guess.
I got a cancellation recently but I'm not sure whether or not its due to job closure….
I plan to reach out to them and see if they need help with premium as at least 1 company is offering to work with them to keep policies active. My guess is that a portion will just not give af but there will be those who want to keep it active if they can and may want to see what the insurance company will do for them.
Also I did come across an aged lead today who was like "I ain't doing nothing right now" … Usually I'd counter but today I just agreed with her.
If that does work consider replacing it yourself. 10 yr same face or less face.
Good point….Thanks!!!
One of them is at the lowest face value that company will go to (but he has health conditions im not sure any other company will accept) so shortening the term is a better option than doing nothing and lapsing.
You may still get a charge back but this may blunt it. Also you keep the client and when this stuff levels out you can rewrite them again